The new partner acquired the rights on admission into the firm. He acquires :

(A) Rights in past profits of firm before admission.

(B) Right to share in the future profits of the firm.

(C) Right to share assets of the firm.

(D) The right to carry on competing business.

Choose the correct answer from the options given below:

When a new partner is admitted to a partnership firm, their rights are limited to what they acquire from the date of admission onward.

Analyzing each statement:

(A) Rights in past profits of firm before admission - This is incorrect. Past profits belong exclusively to the old partners who earned them. The new partner has no claim on profits accumulated before joining.

(B) Right to share in the future profits of the firm - This is correct. The new partner is entitled to share in all profits earned after admission according to the agreed profit-sharing ratio.

(C) Right to share assets of the firm - This is correct. The new partner acquires proportionate ownership rights in the firm's assets. In case of dissolution or settlement, the new partner has a right to share in the assets as per their capital interest.

(D) The right to carry on competing business - This is incorrect. As per the Indian Partnership Act, 1932, partners owe a duty of good faith to the firm. No partner can carry on any business competing with the firm without explicit consent from all other partners. This would be a breach of fiduciary duty.

Only statements (B) and (C) represent rights that a new partner actually acquires upon admission.

Correct Answer: Option 1